EXPLORE THE UAE

HEALTHCARE SECTOR
BUSINESS SWEDEN 19 MARCH, 2017 1
THE UAE GOVERNMENT IS INVESTING EXTENSIVELY TO
BECOME A WORLD-CLASS HEALTHCARE DESTINATION
UAE FORECASTED HEALTHCARE UAE FORECASTED DEMAND FOR
MARKET SIZE HOSPITAL BEDS  To reach its vision to become a world-
25 15000
class healthcare destination and
Billion USD match international standard, the UAE
government is investing
19,5
comprehensively in infrastructure,
20
14000 13 881
know-how, and services.
 With a total of 10,7 BN USD and 1569
15,3 7,5
15 USD per capita, the UAE has the
13 071 second highest healthcare spending in
12,1 13000
5,8 the GCC.
10,7
10 4,6  The UAE alone accounts for 26% of
4,1 12 351
the total healthcare spending
12000
12 007 compared to neighboring GCC
12,1
5 9,4 governments.
6,6 7,5
 To cater for the growing population of
the country, the demand for hospital
0 11000 beds is expected to increase by 3%
2015E 2016F 2018F 2020F 2015E 2016F 2018F 2020F
every year to reach more than 13,800
Outpatient market size Inpatient market size Number of beds
beds by 2020.

SOURCE: WHO, IMF, MOH, ALPEN CAPITAL, STATISTICS GCC

BUSINESS SWEDEN 19 MARCH, 2017 2

GCC HEALTHCARE MARKET SIZE FORECAST

GCC FORECASTED HEALTHCARE GCC FORECASTED DEMAND FOR

MARKET SIZE HOSPITAL BEDS  Growing population and increased
80 Billion USD 116000
cost of treatment drives the GCC
healthcare market that is estimated to
71,3 114000 113 925
70
grow with 12,1% every year from an
112000 estimated 40,3 BN USD in 2015 to
60
68,9 71,3 BN USD in 2020.
110000 109 017
28,9
 However, due to falling oil prices the
46,3 108000
50
40,3 GCC governments’ budgets are
23 106000 coming under pressure and a
40 104 213 prolonged low oil price may influence
18,4 104000
16,4
and put restrain on government
30 101 797
102000 spending.

20 42,4 100000  The falling oil prices are on the other

33,9 hand opening up for international
26,9 98000
24 private sector players to enter the
10
96000 GCC healthcare market, following the
0 94000 privatization trend that also forces the
2015E 2016F 2018F 2020F 2015E 2016F 2018F 2020F governments to strengthen their ties
Outpatient market size Inpatient market size Number of beds with private companies.

SOURCE: WHO, IMF, MOH, ALPEN CAPITAL, STATISTICS GCC.

BUSINESS SWEDEN 19 MARCH, 2017 3

THERE IS NEED FOR ADDITIONAL HEALTHCARE
PROFESSIONALS TO MEET THE REQUIREMENTS
RATIO PER 1,000 PERSONS
 A reason to current low key health indicators in the
Physicians
2,8 UAE is the fact of shortage of local talent.
Nurses
Qatar 7,4
Beds
 Another challenging factor is the high dependence
1,2 on expatriates, who consider the GCC healthcare
facilities as a stepping-stone to gain experience
and then seek careers in Western countries.
1,5
 Considering the capacity master plans developed
UAE 2,7
by each emirate of the UAE, the need for additional
1,1 physicians to meet the healthcare requirements of
the increasing population is expected to be
0,9 significant.
KSA 2,1  Internal medicine, general surgery,
2,2 anaesthesiology and radiology are likely to be the
key growth fields within the distribution of
physicians in the UAE.
4,0
Sweden 12,0
3,0

SOURCE: BUSINESS SWEDEN ANALYSIS, TECHNAVIO, DHA, HAAD, MOH

BUSINESS SWEDEN 19/03/2017 4

 “THE UAE IS TO BECOME THE
LEADING HEALTHCARE
DESTINATION IN THE REGION”
DR. ABDUL RAHMAN MOHAMMED AL OWAIS,
UAE MINISTER OF HEALTH AND PREVANTION

BUSINESS SWEDEN 19 MARCH, 2017 5

HEALTHCARE AS ONE OF THE MAJOR FOCUS AREAS TO
ACHIEVE THE UAE VISION 2021
High population growth and
increase of lifestyle diseases require
foreign equipment and expertise
 UAE is one of the fastest growing
populations worldwide with 9 %
annually
 UAE ranks 2nd in the world with
population suffering from diabetes
and 70% suffers from obesity
 The MoH is planning to invest a vast
amount to prevent lifestyle-related
diseases, such as diabetes
 UAE depends on imports up to 93%
of its medical equipment demand
and is an attractive destination for
imports as it has the lowest import
duties in the region
SOURCE: UAE CABINET, BMI UAE PHARMACEUTICALS & HEALTHCARE REPORT, NOOZZ.COM, UAE MOH, UAE GOVERNMENT STRATEGY PLAN 2011-2013
BUSINESS SWEDEN
The UAE Government Strategy
2011-2013 comprises health care
as one of the major focus areas to
achieve the UAE Vision 2021
 The UAE government aims on
transforming the country to a center
of healthcare excellence in the
Middle East
 Compulsory health insurance for the
entire population is currently
implemented in Abu Dhabi and
Dubai
 Hospitals lack medical technology
thus healthcare facilities are
encouraged to attain higher levels of
IT adoption to improve patient safety
and provide quality care
Privatization and medical tourism
will enhance UAE’s position as the
leading healthcare destination in the
region
 The UAE is working to keep local
patients from travelling elsewhere
for treatment - and boosting the
medical tourism sector of competing
countries
 Increasing collaborations between
health authorities, private
organizations and key government
departments and encouragement of
adoption of PPP-models
 Private healthcare providers show a
significantly larger share of the UAE
market
19 MARCH, 2017 6
A RANGE OF ONGOING E-HEALTH INITIATIVES BRINGS
BUSINESS OPPORTUNITIES FOR SWEDISH COMPANIES
DIGITALISATION INITIATIVES

2,900+ SALAMA (EMR) Aims to create one e-record

integrated public &
private health care
facilities
for patients across public hospitals in Dubai
NABIDH (EHR) Extend the Salama to Dubai private hospitals
and integrate e-records, including 15 programs with 96 initiative.
Ongoing discussions with mobile operators for a PPP-model.

NUMR Will be linked to the National Unified Medical Record

Dubai (NUMR) on initiation by the Ministry of Health and Prevention.

TELEMEDICINE

“UAE residents tend to make approx. 4-14 visits to clinics per year. A
One of the largest great proportion of these medical issues can be solved remotely”
integrated electronic Dr Sameera Al Obeidli, Abu Dhabi Telemedicine Centre
patient information systems
in the Middle East “Satisfaction and happiness of the patient drives all projects and
activities in the Emirate of Dubai. The meaningfulness of usage of the
technology is important “
Dr Mohammad Abdulqader Al Rehda,
Director Health Data Information Analysis Department

REST OF THE COUNTRY

There are plans in place for 35 healthcare projects spread across the
Central Command Northern Emirates
Centre

BUSINESS SWEDEN 19 MARCH, 2017 7

 UAE HEALTHCARE SECTOR IS REGULATED AT BOTH
FEDERAL AND EMIRATE LEVEL
• Regulates UAE’s federal healthcare laws
MoHAP • Approves all import and registration of
FEDERAL LEVEL medical devices and pharmaceuticals
Ministry of Health and Prevention
H.E. Dr. Abdul Rahman Bin Mohammed Al Owais • Regulatory body of healthcare services in
the Northern Emirates

HAAD 3 GOV.
2 GOV. DHA SEHA
Health INSURANCE
INSURANCE Dubai Health Abu Dhabi
Authority of COMPANIES
COMPANIES Authority
Abu Dhabi

EMIRATES LEVEL
• Regulatory body of
healthcare services in Dubai,
including those in free zones.
• Healthcare assets and
professionals in Dubai
licensed by DHA
• Regulatory body of
healthcare in Abu Dhabi
• Mandate to develop the
healthcare sector and
related policies in
Abu Dhabi
• Abu Dhabi Health Services
Company is a public joint
stock company owned by
Abu Dhabi government
• Responsible for operating
public healthcare assets

LARGEST HEALTH • Freezones are

CARE FREE ZONES Dubai Healthcare Dubai Biotechnology independently regulated,
-100% foreign ownership City and Research Park but under MoHAP
-100% tax-free umbrella through DHA

SOURCE: MOH UAE, BMI UAE PHARMACEUTICALS & HEALTHCARE REPORT Q3 2012, BUSINESS SWEDEN INTERVIEWS, ALPEN CAPITAL HEALTHCARE SECTOR REPORT 2011, SEHA

BUSINESS SWEDEN 19 MARCH, 2017 8

 BUSINESS SWEDEN CAN ACCELERATE YOUR
ESTABLISHMENT AND GROWTH IN THE MIDDLE EAST
BUSINESS SWEDEN’S PURPOSE IS TO HELP SWEDISH COMPANIES REACH THEIR FULL INTERNATIONAL
POTENTIAL. WE OFFER OUR CUSTOMERS STRATEGIC ADVICE AND HANDS-ON SUPPORT

EVALUATE UAE PREPARE UAE ESTABLISH UAE DEVELOP UAE

MARKET ENTRY ENTERY STRATEGY PRESENCE BUSINESS

Evaluate if the UAE is the Find partners on the UAE Evaluate and establish Examine opportunities to
WHAT

right market to enter for market to help in your local presence develop and grow your
your business entry and expansion UAE business

 Prioritise among top  Identify, evaluate and  Free zone analysis or  Examine opportunities to
markets of interest rank potential partners establish local presence develop and grow your
according to pre-set UAE business
HOW

 Describe market  Set up business support

criteria
structure, identify market functions  Lead generation and
size, trends and analyze  Arrange and perform hands-on operational
market access channels meetings with key support
stakeholders in the UAE

BUSINESS SWEDEN 19 MARCH, 2017 9